Record net sales of $4.9 billion, up 22% YOY Organic sales growth of 21% Record backlog as of March 31, 2022, up more than 90% YOY and up 25% sequentially
Record operating profit of $284 million; operating margin of 5.8% Gross margin of 21.3%, up 120 basis points YOY and up 50 basis points sequentially Record adjusted operating profit of $315 million, up 85% YOY; adjusted operating margin of 6.4%, up 220 basis points YOY Record adjusted EBITDA of $364 million, up 68% YOY; adjusted EBITDA margin of 7.4%, up 200 basis points YOY
Record earnings per diluted share of $3.19 Adjusted earnings per diluted share of $3.63, up 154% YOY
Leverage of 3.6x; improvement of 0.3x sequentially and 2.1x post-close of the Anixter merger Trailing 12 months adjusted EBITDA of $1.3 billion
Raising 2022 outlook for adjusted earnings per diluted share to a range of $14.00 to $15.00, or up 40% to 50% versus prior year
PITTSBURGH--(BUSINESS WIRE)--Wesco International (NYSE: WCC), a leading provider of business-to-business distribution, logistics services, and supply chain solutions, announces its results for the first quarter of 2022.
“Our first quarter results speak volumes about the new Wesco’s foundation for accelerating growth and profitability,” said John Engel, Chairman, President and CEO. "After delivering an exceptional performance in fiscal 2021, we’re off to an even more impressive start in 2022. Once again, we achieved new company records for sales, backlog and profitability while continuing our rapid deleveraging which now stands at 3.6x adjusted EBITDA, compared to 5.7x when we closed the Anixter merger. With each quarter, the power of Wesco’s scale, expanded portfolio and industry-leading positions becomes more evident as we build momentum and deliver superior value to our customers.”
Mr. Engel continued, “The demonstrated strength of Wesco’s business model and the success of our almost two year integration effort is clearly apparent in the achievement of our three business units which all delivered double-digit sales and profit growth results in the quarter in spite of supply chain challenges in certain categories. Our exceptional financial results continue to support our investment in our digital transformation effort which when completed will raise Wesco to an even higher level of performance, operating efficiency and customer loyalty.”
Mr. Engel added, “As a result of our outstanding start to the year and the accelerating momentum across our business, we are substantially raising our outlook for 2022. We now expect sales for the year to increase 12% to 15% and adjusted EBITDA margin to expand to between 7.3% and 7.6%, equating to $1.54 billion of adjusted EBITDA at the midpoint of the outlook range. We are also increasing our outlook for adjusted EPS to a range of $14.00 to $15.00. Given this robust anticipated growth, we are adjusting our full year 2022 outlook for free cash flow to 80% of adjusted net income to reflect our continued strategic investment in inventory to support our record backlog. The new Wesco is proving to be an integral partner to our customers across each of our business segments. Our financial results continue to prove the extraordinary value of the Wesco and Anixter combination and point to a future of sustained growth and market outperformance.”
The following are results for the three months ended March 31, 2022 compared to the three months ended March 31, 2021:
Segment Results
The Company has operating segments that are comprised of three strategic business units consisting of Electrical & Electronic Solutions ("EES"), Communications & Security Solutions ("CSS") and Utility & Broadband Solutions ("UBS").
Corporate primarily incurs costs related to treasury, tax, information technology, legal and other centralized functions. Segment results include depreciation expense or other allocations related to various corporate assets. Interest expense and other non-operating items are either not allocated to the segments or reviewed on a segment basis. Corporate expenses not directly identifiable with our reportable segments are reported in the tables below to reconcile the reportable segments to the consolidated financial statements.
The following are results by segment for the three months ended March 31, 2022 compared to the three months ended March 31, 2021:
Webcast and Teleconference Access
Wesco will conduct a webcast and teleconference to discuss the first quarter of 2022 earnings as described in this News Release on Thursday, May 5, 2022, at 10:00 a.m. E.T. The call will be broadcast live over the internet and can be accessed from the Investor Relations page of the Company's website at https://investors.wesco.com. The call will be archived on this internet site for seven days.
Wesco International (NYSE: WCC) builds, connects, powers and protects the world. Headquartered in Pittsburgh, Pennsylvania, Wesco is a FORTUNE 500® company with more than $18 billion in annual sales and a leading provider of business-to-business distribution, logistics services and supply chain solutions. Wesco offers a best-in-class product and services portfolio of Electrical and Electronic Solutions, Communications and Security Solutions, and Utility and Broadband Solutions. The Company employs approximately 18,000 people, partners with the industry’s premier suppliers, and serves thousands of customers around the world, including more than 90% of FORTUNE 100® companies. With nearly 1,500,000 products, end-to-end supply chain services, and leading digital capabilities, Wesco provides innovative solutions to meet customer needs across commercial and industrial businesses, contractors, government agencies, institutions, telecommunications providers, and utilities. Wesco operates approximately 800 branches, warehouses and sales offices in more than 50 countries, providing a local presence for customers and a global network to serve multi-location businesses and multi-national corporations.
Forward-Looking Statements
All statements made herein that are not historical facts should be considered as forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially. These statements include, but are not limited to, statements regarding the expected benefits and costs of the transaction between Wesco and Anixter International Inc., including anticipated future financial and operating results, synergies, accretion and growth rates, and the combined company's plans, objectives, expectations and intentions, statements that address the combined company's expected future business and financial performance, and other statements identified by words such as "anticipate," "plan," "believe," "estimate," "intend," "expect," "project," "will" and similar words, phrases or expressions. These forward-looking statements are based on current expectations and beliefs of Wesco's management, as well as assumptions made by, and information currently available to, Wesco's management, current market trends and market conditions and involve risks and uncertainties, many of which are outside of Wesco's and Wesco's management's control, and which may cause actual results to differ materially from those contained in forward-looking statements. Accordingly, you should not place undue reliance on such statements.
Those risks, uncertainties and assumptions include the risk of any unexpected costs or expenses resulting from the transaction, the risk that the transaction could have an adverse effect on the ability of the combined company to retain customers and retain and hire key personnel and maintain relationships with its suppliers, customers and other business relationships and on its operating results and business generally, or the risk that problems may arise in successfully integrating the businesses of the companies, which may result in the combined company not operating as effectively and efficiently as expected, the risk that the combined company may be unable to achieve synergies or other anticipated benefits of the transaction or it may take longer than expected to achieve those synergies or benefits, the risk that the leverage of the company may be higher than anticipated, the impact of natural disasters (including as a result of climate change), health epidemics, pandemics and other outbreaks, such as the ongoing COVID-19 pandemic, supply chain disruptions, and the impact of Russia's recent invasion of Ukraine, including the impact of sanctions or other actions taken by the U.S. or other countries, the increased risk of cyber incidents and exacerbation of key materials shortages, inflationary cost pressures, material cost increases, demand volatility, and logistics and capacity constraints, which may have a material adverse effect on the combined company's business, results of operations and financial condition, and other important factors that could cause actual results to differ materially from those projected. All such factors are difficult to predict and are beyond each company's control. Additional factors that could cause results to differ materially from those described above can be found in Wesco's Annual Report on Form 10-K for the fiscal year ended December 31, 2021 and Wesco's other reports filed with the U.S. Securities and Exchange Commission ("SEC").
WESCO INTERNATIONAL, INC. |
|||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
|||||||||||
(dollar amounts in thousands, except per share amounts) |
|||||||||||
(Unaudited) |
|||||||||||
|
Three Months Ended |
|
|||||||||
|
March 31, 2022 |
|
|
March 31, 2021 |
|
||||||
Net sales |
$ |
4,932,181 |
|
|
|
$ |
4,041,477 |
|
|
||
Cost of goods sold (excluding depreciation and amortization) |
|
3,883,074 |
|
78.7 |
% |
|
|
3,230,441 |
|
79.9 |
% |
Selling, general and administrative expenses |
|
718,098 |
|
14.6 |
% |
|
|
636,576 |
|
15.8 |
% |
Depreciation and amortization |
|
46,980 |
|
|
|
|
41,209 |
|
|
||
Income from operations |
|
284,029 |
|
5.8 |
% |
|
|
133,251 |
|
3.3 |
% |
Interest expense, net |
|
63,620 |
|
|
|
|
70,373 |
|
|
||
Other expense (income), net |
|
1,124 |
|
|
|
|
(2,807 |
) |
|
||
Income before income taxes |
|
219,285 |
|
4.4 |
% |
|
|
65,685 |
|
1.6 |
% |
Provision for income taxes |
|
37,654 |
|
|
|
|
6,531 |
|
|
||
Net income |
|
181,631 |
|
3.7 |
% |
|
|
59,154 |
|
1.5 |
% |
Net income (loss) attributable to noncontrolling interests |
|
388 |
|
|
|
|
(24 |
) |
|
||
Net income attributable to WESCO International, Inc. |
|
181,243 |
|
3.7 |
% |
|
|
59,178 |
|
1.5 |
% |
Preferred stock dividends |
|
14,352 |
|
|
|
|
14,352 |
|
|
||
Net income attributable to common stockholders |
$ |
166,891 |
|
3.4 |
% |
|
$ |
44,826 |
|
1.1 |
% |
|
|
|
|
|
|
||||||
Earnings per diluted share attributable to common stockholders |
$ |
3.19 |
|
|
|
$ |
0.87 |
|
|
||
Weighted-average common shares outstanding and common share equivalents used in computing earnings per diluted common share (in thousands) |
|
52,237 |
|
|
|
|
51,708 |
|
|
||
|
|
|
|
|
|
||||||
Reportable Segments |
|
|
|
|
|
||||||
Net sales: |
|
|
|
|
|
||||||
Electrical & Electronic Solutions |
$ |
2,089,959 |
|
|
|
$ |
1,720,813 |
|
|
||
Communications & Security Solutions |
|
1,434,175 |
|
|
|
|
1,250,615 |
|
|
||
Utility & Broadband Solutions |
|
1,408,047 |
|
|
|
|
1,070,049 |
|
|
||
|
$ |
4,932,181 |
|
|
|
$ |
4,041,477 |
|
|
||
Income from operations: |
|
|
|
|
|
||||||
Electrical & Electronic Solutions |
$ |
178,771 |
|
|
|
$ |
100,111 |
|
|
||
Communications & Security Solutions |
|
104,031 |
|
|
|
|
73,964 |
|
|
||
Utility & Broadband Solutions |
|
129,948 |
|
|
|
|
87,030 |
|
|
||
Corporate |
|
(128,721 |
) |
|
|
|
(127,854 |
) |
|
||
|
$ |
284,029 |
|
|
|
$ |
133,251 |
|
|
WESCO INTERNATIONAL, INC. |
|||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||
(dollar amounts in thousands) |
|||||
(Unaudited) |
|||||
|
March 31,
|
|
December 31,
|
||
Assets |
|
|
|
||
Current Assets |
|
|
|
||
Cash and cash equivalents |
$ |
201,474 |
|
$ |
212,583 |
Trade accounts receivable, net |
|
3,283,522 |
|
|
2,957,613 |
Inventories |
|
2,881,256 |
|
|
2,666,219 |
Other current assets |
|
512,717 |
|
|
513,696 |
Total current assets |
|
6,878,969 |
|
|
6,350,111 |
|
|
|
|
||
Goodwill and intangible assets |
|
5,144,803 |
|
|
5,152,474 |
Other assets |
|
1,161,261 |
|
|
1,115,114 |
Total assets |
$ |
13,185,033 |
|
$ |
12,617,699 |
|
|
|
|
||
|
|
|
|
||
Liabilities and Stockholders' Equity |
|
|
|
||
Current Liabilities |
|
|
|
||
Accounts payable |
$ |
2,341,137 |
|
$ |
2,140,251 |
Short-term debt and current portion of long-term debt, net(1) |
|
70,263 |
|
|
9,528 |
Other current liabilities |
|
850,733 |
|
|
900,029 |
Total current liabilities |
|
3,262,133 |
|
|
3,049,808 |
|
|
|
|
||
Long-term debt, net |
|
4,836,658 |
|
|
4,701,542 |
Other noncurrent liabilities |
|
1,118,764 |
|
|
1,090,138 |
Total liabilities |
|
9,217,555 |
|
|
8,841,488 |
|
|
|
|
||
Stockholders' Equity |
|
|
|
||
Total stockholders' equity |
|
3,967,478 |
|
|
3,776,211 |
Total liabilities and stockholders' equity |
$ |
13,185,033 |
|
$ |
12,617,699 |
(1) |
As of March 31, 2022, short-term debt and current portion of long-term debt includes the $58.6 million aggregate principal amount of the Company's 5.50% Anixter Senior Notes due 2023, which mature on March 1, 2023. |
WESCO INTERNATIONAL, INC. |
|||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||
(dollar amounts in thousands) |
|||||||
(Unaudited) |
|||||||
|
Three Months Ended |
||||||
|
March 31,
|
|
March 31,
|
||||
Operating Activities: |
|
|
|
||||
Net income |
$ |
181,631 |
|
|
$ |
59,154 |
|
Add back (deduct): |
|
|
|
||||
Depreciation and amortization |
|
46,980 |
|
|
|
41,209 |
|
Deferred income taxes |
|
(4,471 |
) |
|
|
(13,074 |
) |
Change in trade receivables, net |
|
(324,558 |
) |
|
|
(117,412 |
) |
Change in inventories |
|
(214,203 |
) |
|
|
(124,772 |
) |
Change in accounts payable |
|
199,983 |
|
|
|
250,987 |
|
Other, net |
|
(57,273 |
) |
|
|
24,398 |
|
Net cash (used in) provided by operating activities |
|
(171,911 |
) |
|
|
120,490 |
|
|
|
|
|
||||
Investing Activities: |
|
|
|
||||
Capital expenditures |
|
(15,247 |
) |
|
|
(10,211 |
) |
Other, net(1) |
|
111 |
|
|
|
54,753 |
|
Net cash (used in) provided by investing activities |
|
(15,136 |
) |
|
|
44,542 |
|
|
|
|
|
||||
Financing Activities: |
|
|
|
||||
Debt borrowings (repayments), net(2) |
|
191,227 |
|
|
|
(288,499 |
) |
Equity activity, net |
|
(16,793 |
) |
|
|
(4,342 |
) |
Other, net(3) |
|
(7,301 |
) |
|
|
(19,332 |
) |
Net cash provided by (used in) financing activities |
|
167,133 |
|
|
|
(312,173 |
) |
|
|
|
|
||||
Effect of exchange rate changes on cash and cash equivalents |
|
8,805 |
|
|
|
1,893 |
|
|
|
|
|
||||
Net change in cash and cash equivalents |
|
(11,109 |
) |
|
|
(145,248 |
) |
Cash and cash equivalents at the beginning of the period |
|
212,583 |
|
|
|
449,135 |
|
Cash and cash equivalents at the end of the period |
$ |
201,474 |
|
|
$ |
303,887 |
|
(1) |
For the three months ended March 31, 2021, other investing activities includes cash consideration totaling approximately $54.1 million from the divestiture of Wesco's legacy utility and data communications businesses in Canada. The Company used the net proceeds from the divestitures to repay indebtedness. |
(2) |
The three months ended March 31, 2021 includes the redemption of the Company's $500.0 million aggregate principal amount of 2021 Notes. The redemption of the 2021 Notes was funded with excess cash, as well as borrowings under the Company's accounts receivable securitization and revolving credit facilities. |
(3) |
For the three months ended March 31, 2022 and 2021, other financing activities includes $14.4 million of dividends paid to holders of Series A preferred stock. |
NON-GAAP FINANCIAL MEASURES
In addition to the results provided in accordance with U.S. Generally Accepted Accounting Principles ("U.S. GAAP") above, this earnings release includes certain non-GAAP financial measures. These financial measures include organic sales growth, gross profit, gross margin, earnings before interest, taxes, depreciation and amortization (EBITDA), adjusted EBITDA, adjusted EBITDA margin, financial leverage, free cash flow, adjusted income from operations, adjusted operating margin, adjusted provision for income taxes, adjusted income before income taxes, adjusted net income, adjusted net income attributable to WESCO International, Inc., adjusted net income attributable to common stockholders, and adjusted earnings per diluted share. The Company believes that these non-GAAP measures are useful to investors as they provide a better understanding of financial performance, and the use of debt and liquidity on a comparable basis. Additionally, certain non-GAAP measures either focus on or exclude items impacting comparability of results such as merger-related and integration costs, and the related income tax effect of such items, allowing investors to more easily compare the Company's financial performance from period to period. Management does not use these non-GAAP financial measures for any purpose other than the reasons stated above.
WESCO INTERNATIONAL, INC. |
||||||||||||||||||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES |
||||||||||||||||||||
(dollar amounts in thousands, except per share data) |
||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||
Organic Sales Growth by Segment: |
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Three Months Ended |
|
Growth/(Decline) |
|||||||||||||||||
|
March 31,
|
|
March 31,
|
|
Reported |
|
Divestiture
|
|
Foreign
|
|
Workday
|
|
Organic
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
EES |
$ |
2,089,959 |
|
$ |
1,720,813 |
|
21.5 |
% |
|
(0.5 |
)% |
|
(0.4 |
)% |
|
1.6 |
% |
|
20.8 |
% |
CSS |
|
1,434,175 |
|
|
1,250,615 |
|
14.7 |
% |
|
— |
% |
|
(0.8 |
)% |
|
1.6 |
% |
|
13.9 |
% |
UBS |
|
1,408,047 |
|
|
1,070,049 |
|
31.6 |
% |
|
(0.4 |
)% |
|
— |
% |
|
1.6 |
% |
|
30.4 |
% |
Total net sales |
$ |
4,932,181 |
|
$ |
4,041,477 |
|
22.0 |
% |
|
(0.3 |
)% |
|
(0.5 |
)% |
|
1.6 |
% |
|
21.2 |
% |
Organic Sales Growth by Segment - Sequential: |
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Three Months Ended |
|
Growth/(Decline) |
|||||||||||||||||
|
March 31,
|
|
December 31,
|
|
Reported |
|
Divestiture
|
|
Foreign
|
|
Workday
|
|
Organic
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
EES |
$ |
2,089,959 |
|
$ |
1,994,954 |
|
4.8 |
% |
|
— |
% |
|
(0.2 |
)% |
|
1.6 |
% |
|
3.4 |
% |
CSS |
|
1,434,175 |
|
|
1,514,813 |
|
(5.3 |
)% |
|
— |
% |
|
(0.2 |
)% |
|
1.6 |
% |
|
(6.7 |
)% |
UBS |
|
1,408,047 |
|
|
1,342,152 |
|
4.9 |
% |
|
— |
% |
|
(0.1 |
)% |
|
1.6 |
% |
|
3.4 |
% |
Total net sales |
$ |
4,932,181 |
|
$ |
4,851,919 |
|
1.7 |
% |
|
— |
% |
|
(0.1 |
)% |
|
1.6 |
% |
|
0.2 |
% |
Note: Organic sales growth is a non-GAAP financial measure of sales performance. Organic sales growth is calculated by deducting the percentage impact from acquisitions and divestitures for one year following the respective transaction, foreign exchange rates and number of workdays from the reported percentage change in consolidated net sales. |
|
Three Months Ended |
||||||
Gross Profit: |
March 31,
|
|
March 31,
|
||||
|
|
|
|
||||
Net sales |
$ |
4,932,181 |
|
|
$ |
4,041,477 |
|
Cost of goods sold (excluding depreciation and amortization) |
|
3,883,074 |
|
|
|
3,230,441 |
|
Gross profit |
$ |
1,049,107 |
|
|
$ |
811,036 |
|
Gross margin |
|
21.3 |
% |
|
|
20.1 |
% |
|
Three Months Ended |
||
Gross Profit: |
December 31, 2021 |
||
|
|
||
Net sales |
$ |
4,851,919 |
|
Cost of goods sold (excluding depreciation and amortization) |
|
3,844,038 |
|
Gross profit |
$ |
1,007,881 |
|
Gross margin |
|
20.8 |
% |
Note: Gross profit is a financial measure commonly used in the distribution industry. Gross profit is calculated by deducting cost of goods sold, excluding depreciation and amortization, from net sales. Gross margin is calculated by dividing gross profit by net sales. |
WESCO INTERNATIONAL, INC. |
|||||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES |
|||||||
(dollar amounts in thousands, except per share data) |
|||||||
(Unaudited) |
|||||||
|
Three Months Ended |
||||||
Adjusted SG&A Expenses: |
March 31, 2022 |
|
March 31, 2021 |
||||
|
|
|
|
||||
Selling, general and administrative expenses |
$ |
718,098 |
|
|
$ |
636,576 |
|
Merger-related and integration costs |
|
(25,563 |
) |
|
|
(46,322 |
) |
Net gain on divestitures |
|
— |
|
|
|
8,927 |
|
Adjusted selling, general and administrative expenses |
$ |
692,535 |
|
|
$ |
599,181 |
|
|
Three Months Ended |
||||||
Adjusted Income from Operations: |
March 31, 2022 |
|
March 31, 2021 |
||||
|
|
|
|
||||
Income from operations |
$ |
284,029 |
|
|
$ |
133,251 |
|
Merger-related and integration costs |
|
25,563 |
|
|
|
46,322 |
|
Accelerated trademark amortization |
|
5,323 |
|
|
|
— |
|
Net gain on divestitures |
|
— |
|
|
|
(8,927 |
) |
Adjusted income from operations |
$ |
314,915 |
|
|
$ |
170,646 |
|
Adjusted income from operations margin % |
|
6.4 |
% |
|
|
4.2 |
% |
|
Three Months Ended |
||||
Adjusted Provision for Income Taxes: |
March 31, 2022 |
|
March 31, 2021 |
||
|
|
|
|
||
Provision for income taxes |
$ |
37,654 |
|
$ |
6,531 |
Income tax effect of adjustments to income from operations(1) |
|
8,008 |
|
|
8,145 |
Adjusted provision for income taxes |
$ |
45,662 |
|
$ |
14,676 |
(1) | The adjustments to income from operations have been tax effected at rates of approximately 26% and 22% for the three months ended March 31, 2022 and 2021, respectively. |
WESCO INTERNATIONAL, INC. |
||||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES |
||||||
(dollar amounts in thousands, except per share data) |
||||||
(Unaudited) |
||||||
|
Three Months Ended |
|||||
Adjusted Earnings per Diluted Share: |
March 31,
|
|
March 31,
|
|||
|
|
|
|
|||
Adjusted income from operations |
$ |
314,915 |
|
$ |
170,646 |
|
Interest expense, net |
|
63,620 |
|
|
70,373 |
|
Other expense (income), net |
|
1,124 |
|
|
(2,807 |
) |
Adjusted income before income taxes |
|
250,171 |
|
|
103,080 |
|
Adjusted provision for income taxes |
|
45,662 |
|
|
14,676 |
|
Adjusted net income |
|
204,509 |
|
|
88,404 |
|
Net income (loss) attributable to noncontrolling interests |
|
388 |
|
|
(24 |
) |
Adjusted net income attributable to WESCO International, Inc. |
|
204,121 |
|
|
88,428 |
|
Preferred stock dividends |
|
14,352 |
|
|
14,352 |
|
Adjusted net income attributable to common stockholders |
$ |
189,769 |
|
$ |
74,076 |
|
|
|
|
|
|||
Diluted shares |
|
52,237 |
|
|
51,708 |
|
Adjusted earnings per diluted share |
$ |
3.63 |
|
$ |
1.43 |
|
Note: For the three months ended March 31, 2022, SG&A expenses, income from operations, the provision for income taxes and earnings per diluted share have been adjusted to exclude merger-related and integration costs, accelerated amortization expense associated with migrating to the Company's master brand architecture, and the related income tax effects. For the three months ended March 31, 2021, SG&A expenses, income from operations, the provision for income taxes and earnings per diluted share have been adjusted to exclude merger-related and integration costs, a net gain on the divestiture of Wesco's legacy utility and data communications businesses in Canada, and the related income tax effects. These non-GAAP financial measures provide a better understanding of the Company's financial results on a comparable basis. |
WESCO INTERNATIONAL, INC. |
||||||||||||||||||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES |
||||||||||||||||||||
(dollar amounts in thousands, except per share data) |
||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||
|
|
Three Months Ended March 31, 2022 |
||||||||||||||||||
EBITDA and Adjusted EBITDA by Segment: |
|
EES |
|
CSS |
|
UBS |
|
Corporate |
|
Total |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income attributable to common stockholders |
|
$ |
178,735 |
|
|
$ |
103,687 |
|
|
$ |
129,981 |
|
|
$ |
(245,512 |
) |
|
$ |
166,891 |
|
Net income attributable to noncontrolling interests |
|
|
210 |
|
|
|
— |
|
|
|
— |
|
|
|
178 |
|
|
|
388 |
|
Preferred stock dividends |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
14,352 |
|
|
|
14,352 |
|
Provision for income taxes |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
37,654 |
|
|
|
37,654 |
|
Interest expense, net |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
63,620 |
|
|
|
63,620 |
|
Depreciation and amortization |
|
|
12,024 |
|
|
|
18,132 |
|
|
|
5,786 |
|
|
|
11,038 |
|
|
|
46,980 |
|
EBITDA |
|
$ |
190,969 |
|
|
$ |
121,819 |
|
|
$ |
135,767 |
|
|
$ |
(118,670 |
) |
|
$ |
329,885 |
|
Other (income) expense, net |
|
|
(174 |
) |
|
|
344 |
|
|
|
(33 |
) |
|
|
987 |
|
|
|
1,124 |
|
Stock-based compensation expense(1) |
|
|
1,622 |
|
|
|
877 |
|
|
|
626 |
|
|
|
4,425 |
|
|
|
7,550 |
|
Merger-related and integration costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
25,563 |
|
|
|
25,563 |
|
Adjusted EBITDA |
|
$ |
192,417 |
|
|
$ |
123,040 |
|
|
$ |
136,360 |
|
|
$ |
(87,695 |
) |
|
$ |
364,122 |
|
Adjusted EBITDA margin % |
|
|
9.2 |
% |
|
|
8.6 |
% |
|
|
9.7 |
% |
|
|
|
|
7.4 |
% |
||
(1) Stock-based compensation expense in the calculation of adjusted EBITDA for the three months ended March 31, 2022 excludes $1.4 million as such amount is included in merger-related and integration costs. |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Three Months Ended March 31, 2021 |
||||||||||||||||||
EBITDA and Adjusted EBITDA by Segment: |
|
EES |
|
CSS |
|
UBS |
|
Corporate |
|
Total |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income attributable to common stockholders |
|
$ |
100,629 |
|
|
$ |
73,594 |
|
|
$ |
87,013 |
|
|
$ |
(216,410 |
) |
|
$ |
44,826 |
|
Net loss attributable to noncontrolling interests |
|
|
(75 |
) |
|
|
— |
|
|
|
— |
|
|
|
51 |
|
|
|
(24 |
) |
Preferred stock dividends |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
14,352 |
|
|
|
14,352 |
|
Provision for income taxes |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
6,531 |
|
|
|
6,531 |
|
Interest expense, net |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
70,373 |
|
|
|
70,373 |
|
Depreciation and amortization |
|
|
10,563 |
|
|
|
16,293 |
|
|
|
5,210 |
|
|
|
9,143 |
|
|
|
41,209 |
|
EBITDA |
|
$ |
111,117 |
|
|
$ |
89,887 |
|
|
$ |
92,223 |
|
|
$ |
(115,960 |
) |
|
$ |
177,267 |
|
Other (income) expense, net |
|
|
(443 |
) |
|
|
370 |
|
|
|
17 |
|
|
|
(2,751 |
) |
|
|
(2,807 |
) |
Stock-based compensation expense(2) |
|
|
1,351 |
|
|
|
425 |
|
|
|
340 |
|
|
|
2,577 |
|
|
|
4,693 |
|
Merger-related and integration costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
46,322 |
|
|
|
46,322 |
|
Net gain on divestitures |
|
|
— |
|
|
|
— |
|
|
|
(8,927 |
) |
|
|
— |
|
|
|
(8,927 |
) |
Adjusted EBITDA |
|
$ |
112,025 |
|
|
$ |
90,682 |
|
|
$ |
83,653 |
|
|
$ |
(69,812 |
) |
|
$ |
216,548 |
|
Adjusted EBITDA margin % |
|
|
6.5 |
% |
|
|
7.3 |
% |
|
|
7.8 |
% |
|
|
|
|
5.4 |
% |
||
(2) Stock-based compensation expense in the calculation of adjusted EBITDA for the three months ended March 31, 2021 excludes $1.3 million as such amount is included in merger-related and integration costs. |
||||||||||||||||||||
Note: EBITDA, Adjusted EBITDA and Adjusted EBITDA margin % are non-GAAP financial measures that provide indicators of the Company's performance and its ability to meet debt service requirements. EBITDA is defined as earnings before interest, taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA before foreign exchange and other non-operating expenses (income), non-cash stock-based compensation expense, merger-related and integration costs, and net gain on the divestiture of Wesco's legacy utility and data communications businesses in Canada. Adjusted EBITDA margin % is calculated by dividing Adjusted EBITDA by net sales. |
WESCO INTERNATIONAL, INC. |
|||||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES |
|||||||
(dollar amounts in thousands, except per share data) |
|||||||
(Unaudited) |
|||||||
|
Twelve Months Ended |
||||||
Financial Leverage: |
March 31,
|
|
December 31,
|
||||
|
|
|
|
||||
Net income attributable to common stockholders |
$ |
530,039 |
|
|
$ |
407,974 |
|
Net income attributable to noncontrolling interests |
|
1,431 |
|
|
|
1,020 |
|
Preferred stock dividends |
|
57,408 |
|
|
|
57,408 |
|
Provision for income taxes |
|
146,633 |
|
|
|
115,510 |
|
Interest expense, net |
|
261,321 |
|
|
|
268,073 |
|
Depreciation and amortization |
|
204,325 |
|
|
|
198,554 |
|
EBITDA |
|
1,201,157 |
|
|
|
1,048,539 |
|
Other income, net(1) |
|
(44,181 |
) |
|
|
(48,112 |
) |
Stock-based compensation expense |
|
28,556 |
|
|
|
25,699 |
|
Merger-related and integration costs |
|
137,725 |
|
|
|
158,484 |
|
Net gain on divestitures |
|
— |
|
|
|
(8,927 |
) |
Adjusted EBITDA |
$ |
1,323,257 |
|
|
$ |
1,175,683 |
|
|
|
|
|
||||
|
As of |
||||||
|
March 31,
|
|
December 31,
|
||||
Short-term debt and current portion of long-term debt, net |
$ |
70,263 |
|
|
$ |
9,528 |
|
Long-term debt, net |
|
4,836,658 |
|
|
|
4,701,542 |
|
Debt discount and debt issuance costs(2) |
|
67,715 |
|
|
|
70,572 |
|
Fair value adjustments to Anixter Senior Notes due 2023 and 2025(2) |
|
(786 |
) |
|
|
(957 |
) |
Total debt |
|
4,973,850 |
|
|
|
4,780,685 |
|
Less: cash and cash equivalents |
|
201,474 |
|
|
|
212,583 |
|
Total debt, net of cash |
$ |
4,772,376 |
|
|
$ |
4,568,102 |
|
|
|
|
|
||||
Financial leverage ratio |
|
3.6 |
|
|
|
3.9 |
|
(1) |
Other non-operating income for the twelve months ended March 31, 2022 and December 31, 2021 includes a $36.6 million curtailment gain resulting from the remeasurement of the Company's pension obligations in the U.S. and Canada due to amending certain terms of such defined benefit plans. |
(2) |
Debt is presented in the condensed consolidated balance sheets net of debt discount and debt issuance costs, and includes adjustments to record the long-term debt assumed in the merger with Anixter at its acquisition date fair value. |
Note: Financial leverage is a non-GAAP measure of the use of debt. Financial leverage ratio is calculated by dividing total debt, excluding debt discount, debt issuance costs and fair value adjustments, net of cash, by adjusted EBITDA. EBITDA is defined as the trailing twelve months earnings before interest, taxes, depreciation and amortization. Adjusted EBITDA is defined as the trailing twelve months EBITDA before foreign exchange and other non-operating expenses (income), non-cash stock-based compensation expense, merger-related and integration costs, and net gain on the divestiture of Wesco's legacy utility and data communications businesses in Canada. |
WESCO INTERNATIONAL, INC. |
|||||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES |
|||||||
(dollar amounts in thousands, except per share data) |
|||||||
(Unaudited) |
|||||||
|
Three Months Ended |
||||||
Free Cash Flow: |
March 31, 2022 |
|
March 31, 2021 |
||||
|
|
|
|
||||
Cash flow (used in) provided by operations |
$ |
(171,911 |
) |
|
$ |
120,490 |
|
Less: Capital expenditures |
|
(15,247 |
) |
|
|
(10,211 |
) |
Add: Merger-related and integration cash costs |
|
22,798 |
|
|
|
14,472 |
|
Free cash flow |
$ |
(164,360 |
) |
|
$ |
124,751 |
|
Percentage of adjusted net income |
|
(80 |
)% |
|
|
141 |
% |
|
Note: Free cash flow is a non-GAAP financial measure of liquidity. Capital expenditures are deducted from operating cash flow to determine free cash flow. Free cash flow is available to fund investing and financing activities. For the three months ended March 31, 2022 and 2021, the Company paid for certain costs to integrate the acquired Anixter business. Such expenditures have been added back to operating cash flow to determine free cash flow for such periods. |
Рекордные чистые продажи составили 4,9 миллиарда долларов, увеличившись на 22% в годовом исчислении Органический рост продаж на 21% Рекордное отставание по состоянию на 31 марта 2022 года, увеличившись более чем на 90% в годовом исчислении и на 25% последовательно
Рекордная операционная прибыль в размере 284 миллионов долларов; операционная маржа 5,8% Валовая прибыль составила 21,3%, увеличившись на 120 базисных пунктов в годовом исчислении и на 50 базисных пунктов последовательно Рекордная скорректированная операционная прибыль составила $315 млн, увеличившись на 85% г/г; скорректированная операционная маржа составила 6,4%, увеличившись на 220 базисных пунктов г/г Рекордная скорректированная EBITDA составила $364 млн, увеличившись на 68% г/г; скорректированная рентабельность по EBITDA составила 7,4%, увеличившись на 200 базисных пунктов г/г
Рекордная прибыль на разводненную акцию в размере $3,19 Скорректированная прибыль на разводненную акцию составила $3,63, увеличившись на 154% г/г
Кредитное плечо в 3,6 раза; улучшение в 0,3 раза последовательно и в 2,1 раза после закрытия слияния Anixter Скорректированная EBITDA за 12 месяцев составила 1,3 миллиарда долларов
Повышение прогноза скорректированной прибыли на разводненную акцию на 2022 год до диапазона от 14,00 до 15,00 долларов США, или на 40-50% больше по сравнению с предыдущим годом
ПИТТСБУРГ-- (BUSINESS WIRE)--WESCO International (NYSE: WCC), ведущий поставщик услуг по распределению, логистическим услугам и решениям для цепочек поставок от бизнеса к бизнесу, объявляет о своих результатах за первый квартал 2022 года.
“Наши результаты за первый квартал красноречиво говорят о новой основе Wesco для ускорения роста и прибыльности”, - сказал Джон Энгел, председатель, президент и главный исполнительный директор. "После достижения исключительных результатов в 2021 финансовом году мы готовимся к еще более впечатляющему старту в 2022 году. В очередной раз мы достигли новых рекордов компании по продажам, отставанию и прибыльности, продолжая при этом быстрое сокращение доли заемных средств, которая сейчас составляет 3,6 х скорректированной EBITDA по сравнению с 5,7 х, когда мы завершили слияние Anixter. С каждым кварталом мощь масштаба, расширенного портфеля и лидирующих позиций Wesco в отрасли становится все более очевидной по мере того, как мы набираем обороты и обеспечиваем нашим клиентам превосходную ценность”.
Г-н Энгель продолжил: “Продемонстрированная сила бизнес-модели Wesco и успех наших почти двухлетних усилий по интеграции четко видны в достижениях наших трех бизнес-подразделений, которые все показали двузначные показатели продаж и роста прибыли за квартал, несмотря на проблемы в цепочке поставок в определенных категориях. Наши исключительные финансовые результаты продолжают поддерживать наши инвестиции в наши усилия по цифровой трансформации, которые после завершения поднимут Wesco на еще более высокий уровень производительности, операционной эффективности и лояльности клиентов”.
Г-н Энгель добавил: “В результате нашего выдающегося начала года и ускорения темпов развития нашего бизнеса мы существенно повышаем наши прогнозы на 2022 год. Теперь мы ожидаем, что продажи за год увеличатся на 12-15%, а скорректированная рентабельность по EBITDA увеличится до 7,3%-7,6%, что соответствует скорректированной EBITDA в размере 1,54 млрд долларов США в средней точке диапазона прогнозов. Мы также повышаем наш прогноз по скорректированной прибыли на акцию до диапазона от $14,00 до $15,00. Учитывая этот ожидаемый устойчивый рост, мы корректируем наш прогноз свободного денежного потока на весь 2022 год до 80% от скорректированной чистой прибыли, чтобы отразить наши продолжающиеся стратегические инвестиции в товарно-материальные запасы для поддержки нашего рекордного отставания. Новый Wesco зарекомендовал себя как неотъемлемый партнер для наших клиентов во всех наших бизнес-сегментах. Наши финансовые результаты продолжают доказывать исключительную ценность комбинации Wesco и Anixter и указывают на будущее устойчивого роста и превосходства на рынке”.
Ниже приведены результаты за три месяца, закончившихся 31 марта 2022 года, по сравнению с тремя месяцами, закончившимися 31 марта 2021 года:
Результаты сегмента
У Компании есть операционные сегменты, которые состоят из трех стратегических бизнес-подразделений, состоящих из Электротехнических и электронных решений ("EES"), Решений для связи и безопасности ("CSS") и Решений для коммунальных услуг и широкополосной связи ("UBS").
Корпорация в первую очередь несет расходы, связанные с казначейством, налогами, информационными технологиями, юридическими и другими централизованными функциями. Результаты сегмента включают амортизационные отчисления или другие отчисления, связанные с различными корпоративными активами. Процентные расходы и прочие внереализационные статьи либо не распределяются по сегментам, либо анализируются на сегментной основе. Корпоративные расходы, непосредственно не связанные с нашими отчетными сегментами, отражены в таблицах ниже для приведения отчетных сегментов в соответствие с консолидированной финансовой отчетностью.
Ниже приведены результаты по сегментам за три месяца, закончившихся 31 марта 2022 года, по сравнению с тремя месяцами, закончившимися 31 марта 2021 года:
Доступ к веб-трансляции и телеконференциям
Wesco проведет веб-трансляцию и телеконференцию для обсуждения доходов за первый квартал 2022 года, как описано в этом пресс-релизе, в четверг, 5 мая 2022 года, в 10:00 утра по восточному времени. Звонок будет транслироваться в прямом эфире через Интернет и доступен со страницы по связям с инвесторами на веб-сайте Компании по адресу: https://investors.wesco.com . Звонок будет храниться в архиве на этом интернет-сайте в течение семи дней.
WESCO International (NYSE: WCC) строит, соединяет, питает и защищает мир. Компания Wesco со штаб-квартирой в Питтсбурге, штат Пенсильвания, входит в список FORTUNE 500® с годовым объемом продаж более 18 миллиардов долларов и является ведущим поставщиком услуг по дистрибуции, логистике и решениям для цепочек поставок. Wesco предлагает лучший в своем классе ассортимент продуктов и услуг, включающий Электрические и Электронные Решения, Решения для связи и Безопасности, а также Коммунальные и Широкополосные Решения. В компании работает около 18 000 человек, она сотрудничает с ведущими поставщиками отрасли и обслуживает тысячи клиентов по всему миру, включая более 90% компаний из списка FORTUNE 100®. Располагая почти 1 500 000 продуктами, комплексными услугами цепочки поставок и передовыми цифровыми возможностями, Wesco предлагает инновационные решения для удовлетворения потребностей клиентов коммерческих и промышленных предприятий, подрядчиков, государственных учреждений, учреждений, поставщиков телекоммуникационных услуг и коммунальных служб. Wesco управляет примерно 800 филиалами, складами и офисами продаж в более чем 50 странах, обеспечивая локальное присутствие для клиентов и глобальную сеть для обслуживания предприятий с несколькими местоположениями и многонациональных корпораций.
Прогнозные заявления
Все сделанные здесь заявления, которые не являются историческими фактами, следует рассматривать как заявления прогнозного характера по смыслу Закона о реформе судебных разбирательств по частным ценным бумагам 1995 года. Такие заявления связаны с известными и неизвестными рисками, неопределенностями и другими факторами, которые могут привести к существенному отличию фактических результатов. Эти заявления включают, но не ограничиваются ими, заявления относительно ожидаемых выгод и затрат от сделки между Wesco и Anixter International Inc., включая ожидаемые будущие финансовые и операционные результаты, синергию, темпы роста и роста, а также планы, цели, ожидания и намерения объединенной компании, заявления, касающиеся объединенные ожидаемые будущие деловые и финансовые показатели компании, а также другие заявления, обозначаемые такими словами, как "предвидеть", "планировать", "полагать", "оценивать", "намереваться", "ожидать", "проектировать", "будет" и подобными словами, фразами или выражениями. Эти прогнозные заявления основаны на текущих ожиданиях и убеждениях руководства Wesco, а также на допущениях, сделанных руководством Wesco, и информации, доступной в настоящее время руководству Wesco, текущих рыночных тенденциях и рыночных условиях и связаны с рисками и неопределенностями, многие из которых находятся вне контроля Wesco и руководства Wesco, и которые могут привести к тому, что фактические результаты будут существенно отличаться от тех, которые содержатся в прогнозных заявлениях. Соответственно, вы не должны чрезмерно полагаться на такие заявления.
Те риски, неопределенности и предположения включают риск непредвиденных расходов или расходов, вытекающих из сделки, риск, что сделка может негативно повлиять на способность компании удерживать клиентов и удерживать и нанимать ключевых сотрудников и поддерживать отношения со своими поставщиками, клиентами и другими деловыми отношениями и о результатах его деятельности и бизнеса в целом, или риск того, что могут возникнуть проблемы в успешной интеграции бизнесов компаний, что может привести к объединенной компании работает не так, как эффектно и эффективно, как ожидалось, риск того, что объединенная компания может оказаться не в состоянии достичь синергетического эффекта или другие предполагаемые выгоды от сделки или это может занять больше времени, чем ожидалось для достижения синергетического эффекта или выгоды, риск того, что долговая нагрузка компании может быть выше, чем ожидалось, последствий стихийных бедствий (в том числе в результате изменения климата), борьбу с эпидемиями, пандемиями и других вспышек, таких как продолжающийся COVID-19 пандемией, цепочки поставок, перебои, и влияние России недавнем вторжении в Украину в том числе влияние санкций и другие действия, предпринятые США или других странах, увеличились риски киберинцидентов и обострения основных материалов недостач, инфляционные издержки, стоимость материала увеличивается, нестабильность спроса, и организация, и в силу ограниченности возможностей, которые могут оказать существенное негативное влияние на объединенной компании бизнес, результаты операционной деятельности и финансовое состояние, и других важных факторов, которые могут вызвать фактические результаты могут существенно отличаться от прогнозируемых. Все такие факторы трудно предсказать и находятся вне контроля каждой компании. Дополнительные факторы, которые могут привести к существенному отличию результатов от описанных выше, можно найти в Годовом отчете Wesco по форме 10-K за финансовый год, закончившийся 31 декабря 2021 года, и в других отчетах Wesco, поданных в Комиссию по ценным бумагам и биржам США ("SEC").
WESCO International, INC. |
|||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
|||||||||||
(dollar amounts in thousands, except per share amounts) |
|||||||||||
(Unaudited) |
|||||||||||
|
Three Months Ended |
|
|||||||||
|
March 31, 2022 |
|
|
March 31, 2021 |
|
||||||
Net sales |
$ |
4,932,181 |
|
|
|
$ |
4,041,477 |
|
|
||
Cost of goods sold (excluding depreciation and amortization) |
|
3,883,074 |
|
78.7 |
% |
|
|
3,230,441 |
|
79.9 |
% |
Selling, general and administrative expenses |
|
718,098 |
|
14.6 |
% |
|
|
636,576 |
|
15.8 |
% |
Depreciation and amortization |
|
46,980 |
|
|
|
|
41,209 |
|
|
||
Income from operations |
|
284,029 |
|
5.8 |
% |
|
|
133,251 |
|
3.3 |
% |
Interest expense, net |
|
63,620 |
|
|
|
|
70,373 |
|
|
||
Other expense (income), net |
|
1,124 |
|
|
|
|
(2,807 |
) |
|
||
Income before income taxes |
|
219,285 |
|
4.4 |
% |
|
|
65,685 |
|
1.6 |
% |
Provision for income taxes |
|
37,654 |
|
|
|
|
6,531 |
|
|
||
Net income |
|
181,631 |
|
3.7 |
% |
|
|
59,154 |
|
1.5 |
% |
Net income (loss) attributable to noncontrolling interests |
|
388 |
|
|
|
|
(24 |
) |
|
||
Net income attributable to WESCO International, Inc. |
|
181,243 |
|
3.7 |
% |
|
|
59,178 |
|
1.5 |
% |
Preferred stock dividends |
|
14,352 |
|
|
|
|
14,352 |
|
|
||
Net income attributable to common stockholders |
$ |
166,891 |
|
3.4 |
% |
|
$ |
44,826 |
|
1.1 |
% |
|
|
|
|
|
|
||||||
Earnings per diluted share attributable to common stockholders |
$ |
3.19 |
|
|
|
$ |
0.87 |
|
|
||
Weighted-average common shares outstanding and common share equivalents used in computing earnings per diluted common share (in thousands) |
|
52,237 |
|
|
|
|
51,708 |
|
|
||
|
|
|
|
|
|
||||||
Reportable Segments |
|
|
|
|
|
||||||
Net sales: |
|
|
|
|
|
||||||
Electrical & Electronic Solutions |
$ |
2,089,959 |
|
|
|
$ |
1,720,813 |
|
|
||
Communications & Security Solutions |
|
1,434,175 |
|
|
|
|
1,250,615 |
|
|
||
Utility & Broadband Solutions |
|
1,408,047 |
|
|
|
|
1,070,049 |
|
|
||
|
$ |
4,932,181 |
|
|
|
$ |
4,041,477 |
|
|
||
Income from operations: |
|
|
|
|
|
||||||
Electrical & Electronic Solutions |
$ |
178,771 |
|
|
|
$ |
100,111 |
|
|
||
Communications & Security Solutions |
|
104,031 |
|
|
|
|
73,964 |
|
|
||
Utility & Broadband Solutions |
|
129,948 |
|
|
|
|
87,030 |
|
|
||
Corporate |
|
(128,721 |
) |
|
|
|
(127,854 |
) |
|
||
|
$ |
284,029 |
|
|
|
$ |
133,251 |
|
|
WESCO International, INC. |
|||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||
(dollar amounts in thousands) |
|||||
(Unaudited) |
|||||
|
March 31,
|
|
December 31,
|
||
Assets |
|
|
|
||
Current Assets |
|
|
|
||
Cash and cash equivalents |
$ |
201,474 |
|
$ |
212,583 |
Trade accounts receivable, net |
|
3,283,522 |
|
|
2,957,613 |
Inventories |
|
2,881,256 |
|
|
2,666,219 |
Other current assets |
|
512,717 |
|
|
513,696 |
Total current assets |
|
6,878,969 |
|
|
6,350,111 |
|
|
|
|
||
Goodwill and intangible assets |
|
5,144,803 |
|
|
5,152,474 |
Other assets |
|
1,161,261 |
|
|
1,115,114 |
Total assets |
$ |
13,185,033 |
|
$ |
12,617,699 |
|
|
|
|
||
|
|
|
|
||
Liabilities and Stockholders' Equity |
|
|
|
||
Current Liabilities |
|
|
|
||
Accounts payable |
$ |
2,341,137 |
|
$ |
2,140,251 |
Short-term debt and current portion of long-term debt, net(1) |
|
70,263 |
|
|
9,528 |
Other current liabilities |
|
850,733 |
|
|
900,029 |
Total current liabilities |
|
3,262,133 |
|
|
3,049,808 |
|
|
|
|
||
Long-term debt, net |
|
4,836,658 |
|
|
4,701,542 |
Other noncurrent liabilities |
|
1,118,764 |
|
|
1,090,138 |
Total liabilities |
|
9,217,555 |
|
|
8,841,488 |
|
|
|
|
||
Stockholders' Equity |
|
|
|
||
Total stockholders' equity |
|
3,967,478 |
|
|
3,776,211 |
Total liabilities and stockholders' equity |
$ |
13,185,033 |
|
$ |
12,617,699 |
(1) |
As of March 31, 2022, short-term debt and current portion of long-term debt includes the $58.6 million aggregate principal amount of the Company's 5.50% Anixter Senior Notes due 2023, which mature on March 1, 2023. |
WESCO International, INC. |
|||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||
(dollar amounts in thousands) |
|||||||
(Unaudited) |
|||||||
|
Three Months Ended |
||||||
|
March 31,
|
|
March 31,
|
||||
Operating Activities: |
|
|
|
||||
Net income |
$ |
181,631 |
|
|
$ |
59,154 |
|
Add back (deduct): |
|
|
|
||||
Depreciation and amortization |
|
46,980 |
|
|
|
41,209 |
|
Deferred income taxes |
|
(4,471 |
) |
|
|
(13,074 |
) |
Change in trade receivables, net |
|
(324,558 |
) |
|
|
(117,412 |
) |
Change in inventories |
|
(214,203 |
) |
|
|
(124,772 |
) |
Change in accounts payable |
|
199,983 |
|
|
|
250,987 |
|
Other, net |
|
(57,273 |
) |
|
|
24,398 |
|
Net cash (used in) provided by operating activities |
|
(171,911 |
) |
|
|
120,490 |
|
|
|
|
|
||||
Investing Activities: |
|
|
|
||||
Capital expenditures |
|
(15,247 |
) |
|
|
(10,211 |
) |
Other, net(1) |
|
111 |
|
|
|
54,753 |
|
Net cash (used in) provided by investing activities |
|
(15,136 |
) |
|
|
44,542 |
|
|
|
|
|
||||
Financing Activities: |
|
|
|
||||
Debt borrowings (repayments), net(2) |
|
191,227 |
|
|
|
(288,499 |
) |
Equity activity, net |
|
(16,793 |
) |
|
|
(4,342 |
) |
Other, net(3) |
|
(7,301 |
) |
|
|
(19,332 |
) |
Net cash provided by (used in) financing activities |
|
167,133 |
|
|
|
(312,173 |
) |
|
|
|
|
||||
Effect of exchange rate changes on cash and cash equivalents |
|
8,805 |
|
|
|
1,893 |
|
|
|
|
|
||||
Net change in cash and cash equivalents |
|
(11,109 |
) |
|
|
(145,248 |
) |
Cash and cash equivalents at the beginning of the period |
|
212,583 |
|
|
|
449,135 |
|
Cash and cash equivalents at the end of the period |
$ |
201,474 |
|
|
$ |
303,887 |
|
(1) |
For the three months ended March 31, 2021, other investing activities includes cash consideration totaling approximately $54.1 million from the divestiture of Wesco's legacy utility and data communications businesses in Canada. The Company used the net proceeds from the divestitures to repay indebtedness. |
(2) |
The three months ended March 31, 2021 includes the redemption of the Company's $500.0 million aggregate principal amount of 2021 Notes. The redemption of the 2021 Notes was funded with excess cash, as well as borrowings under the Company's accounts receivable securitization and revolving credit facilities. |
(3) |
For the three months ended March 31, 2022 and 2021, other financing activities includes $14.4 million of dividends paid to holders of Series A preferred stock. |
финансовые показатели, не относящиеся к ОПБУ
В дополнение к результатам, представленным в соответствии с Общепринятыми принципами бухгалтерского учета США ("ОПБУ США") выше, этот отчет о прибылях и убытках включает некоторые финансовые показатели, не относящиеся к ОПБУ. Эти финансовые показатели включают органический рост продаж, валовую прибыль, валовую маржу, прибыль до вычета процентов, налогов, износа и амортизации (EBITDA), скорректированную EBITDA, скорректированную маржу EBITDA, финансовый рычаг, свободный денежный поток, скорректированный доход от операций, скорректированную операционную маржу, скорректированный резерв по налогу на прибыль, скорректированный доход до вычета дохода налоги, скорректированная чистая прибыль, скорректированная чистая прибыль, относящаяся к WESCO International, Inc., скорректированная чистая прибыль, относящаяся к держателям обыкновенных акций, и скорректированная прибыль на разводненную акцию. Компания считает, что эти показатели, не относящиеся к GAAP, полезны для инвесторов, поскольку они обеспечивают лучшее понимание финансовых показателей и использования долга и ликвидности на сопоставимой основе. Кроме того, некоторые показатели, не относящиеся к GAAP, либо фокусируются, либо исключают статьи, влияющие на сопоставимость результатов, такие как затраты, связанные со слиянием и интеграцией, и связанные с ними налоговые последствия таких статей, что позволяет инвесторам легче сравнивать финансовые показатели Компании от периода к периоду. Руководство не использует эти финансовые показатели, не относящиеся к GAAP, для каких-либо иных целей, кроме указанных выше причин.
WESCO International, INC. |
||||||||||||||||||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES |
||||||||||||||||||||
(dollar amounts in thousands, except per share data) |
||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||
Organic Sales Growth by Segment: |
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Three Months Ended |
|
Growth/(Decline) |
|||||||||||||||||
|
March 31,
|
|
March 31,
|
|
Reported |
|
Divestiture
|
|
Foreign
|
|
Workday
|
|
Organic
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
EES |
$ |
2,089,959 |
|
$ |
1,720,813 |
|
21.5 |
% |
|
(0.5 |
)% |
|
(0.4 |
)% |
|
1.6 |
% |
|
20.8 |
% |
CSS |
|
1,434,175 |
|
|
1,250,615 |
|
14.7 |
% |
|
— |
% |
|
(0.8 |
)% |
|
1.6 |
% |
|
13.9 |
% |
UBS |
|
1,408,047 |
|
|
1,070,049 |
|
31.6 |
% |
|
(0.4 |
)% |
|
— |
% |
|
1.6 |
% |
|
30.4 |
% |
Total net sales |
$ |
4,932,181 |
|
$ |
4,041,477 |
|
22.0 |
% |
|
(0.3 |
)% |
|
(0.5 |
)% |
|
1.6 |
% |
|
21.2 |
% |
Organic Sales Growth by Segment - Sequential: |
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Three Months Ended |
|
Growth/(Decline) |
|||||||||||||||||
|
March 31,
|
|
December 31,
|
|
Reported |
|
Divestiture
|
|
Foreign
|
|
Workday
|
|
Organic
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
EES |
$ |
2,089,959 |
|
$ |
1,994,954 |
|
4.8 |
% |
|
— |
% |
|
(0.2 |
)% |
|
1.6 |
% |
|
3.4 |
% |
CSS |
|
1,434,175 |
|
|
1,514,813 |
|
(5.3 |
)% |
|
— |
% |
|
(0.2 |
)% |
|
1.6 |
% |
|
(6.7 |
)% |
UBS |
|
1,408,047 |
|
|
1,342,152 |
|
4.9 |
% |
|
— |
% |
|
(0.1 |
)% |
|
1.6 |
% |
|
3.4 |
% |
Total net sales |
$ |
4,932,181 |
|
$ |
4,851,919 |
|
1.7 |
% |
|
— |
% |
|
(0.1 |
)% |
|
1.6 |
% |
|
0.2 |
% |
Note: Organic sales growth is a non-GAAP financial measure of sales performance. Organic sales growth is calculated by deducting the percentage impact from acquisitions and divestitures for one year following the respective transaction, foreign exchange rates and number of workdays from the reported percentage change in consolidated net sales. |
|
Three Months Ended |
||||||
Gross Profit: |
March 31,
|
|
March 31,
|
||||
|
|
|
|
||||
Net sales |
$ |
4,932,181 |
|
|
$ |
4,041,477 |
|
Cost of goods sold (excluding depreciation and amortization) |
|
3,883,074 |
|
|
|
3,230,441 |
|
Gross profit |
$ |
1,049,107 |
|
|
$ |
811,036 |
|
Gross margin |
|
21.3 |
% |
|
|
20.1 |
% |
|
Three Months Ended |
||
Gross Profit: |
December 31, 2021 |
||
|
|
||
Net sales |
$ |
4,851,919 |
|
Cost of goods sold (excluding depreciation and amortization) |
|
3,844,038 |
|
Gross profit |
$ |
1,007,881 |
|
Gross margin |
|
20.8 |
% |
Note: Gross profit is a financial measure commonly used in the distribution industry. Gross profit is calculated by deducting cost of goods sold, excluding depreciation and amortization, from net sales. Gross margin is calculated by dividing gross profit by net sales. |
WESCO International, INC. |
|||||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES |
|||||||
(dollar amounts in thousands, except per share data) |
|||||||
(Unaudited) |
|||||||
|
Three Months Ended |
||||||
Adjusted SG&A Expenses: |
March 31, 2022 |
|
March 31, 2021 |
||||
|
|
|
|
||||
Selling, general and administrative expenses |
$ |
718,098 |
|
|
$ |
636,576 |
|
Merger-related and integration costs |
|
(25,563 |
) |
|
|
(46,322 |
) |
Net gain on divestitures |
|
— |
|
|
|
8,927 |
|
Adjusted selling, general and administrative expenses |
$ |
692,535 |
|
|
$ |
599,181 |
|
|
Three Months Ended |
||||||
Adjusted Income from Operations: |
March 31, 2022 |
|
March 31, 2021 |
||||
|
|
|
|
||||
Income from operations |
$ |
284,029 |
|
|
$ |
133,251 |
|
Merger-related and integration costs |
|
25,563 |
|
|
|
46,322 |
|
Accelerated trademark amortization |
|
5,323 |
|
|
|
— |
|
Net gain on divestitures |
|
— |
|
|
|
(8,927 |
) |
Adjusted income from operations |
$ |
314,915 |
|
|
$ |
170,646 |
|
Adjusted income from operations margin % |
|
6.4 |
% |
|
|
4.2 |
% |
|
Three Months Ended |
||||
Adjusted Provision for Income Taxes: |
March 31, 2022 |
|
March 31, 2021 |
||
|
|
|
|
||
Provision for income taxes |
$ |
37,654 |
|
$ |
6,531 |
Income tax effect of adjustments to income from operations(1) |
|
8,008 |
|
|
8,145 |
Adjusted provision for income taxes |
$ |
45,662 |
|
$ |
14,676 |
(1) | The adjustments to income from operations have been tax effected at rates of approximately 26% and 22% for the three months ended March 31, 2022 and 2021, respectively. |
WESCO International, INC. |
||||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES |
||||||
(dollar amounts in thousands, except per share data) |
||||||
(Unaudited) |
||||||
|
Three Months Ended |
|||||
Adjusted Earnings per Diluted Share: |
March 31,
|
|
March 31,
|
|||
|
|
|
|
|||
Adjusted income from operations |
$ |
314,915 |
|
$ |
170,646 |
|
Interest expense, net |
|
63,620 |
|
|
70,373 |
|
Other expense (income), net |
|
1,124 |
|
|
(2,807 |
) |
Adjusted income before income taxes |
|
250,171 |
|
|
103,080 |
|
Adjusted provision for income taxes |
|
45,662 |
|
|
14,676 |
|
Adjusted net income |
|
204,509 |
|
|
88,404 |
|
Net income (loss) attributable to noncontrolling interests |
|
388 |
|
|
(24 |
) |
Adjusted net income attributable to WESCO International, Inc. |
|
204,121 |
|
|
88,428 |
|
Preferred stock dividends |
|
14,352 |
|
|
14,352 |
|
Adjusted net income attributable to common stockholders |
$ |
189,769 |
|
$ |
74,076 |
|
|
|
|
|
|||
Diluted shares |
|
52,237 |
|
|
51,708 |
|
Adjusted earnings per diluted share |
$ |
3.63 |
|
$ |
1.43 |
|
Note: For the three months ended March 31, 2022, SG&A expenses, income from operations, the provision for income taxes and earnings per diluted share have been adjusted to exclude merger-related and integration costs, accelerated amortization expense associated with migrating to the Company's master brand architecture, and the related income tax effects. For the three months ended March 31, 2021, SG&A expenses, income from operations, the provision for income taxes and earnings per diluted share have been adjusted to exclude merger-related and integration costs, a net gain on the divestiture of Wesco's legacy utility and data communications businesses in Canada, and the related income tax effects. These non-GAAP financial measures provide a better understanding of the Company's financial results on a comparable basis. |
WESCO International, INC. |
||||||||||||||||||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES |
||||||||||||||||||||
(dollar amounts in thousands, except per share data) |
||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||
|
|
Three Months Ended March 31, 2022 |
||||||||||||||||||
EBITDA and Adjusted EBITDA by Segment: |
|
EES |
|
CSS |
|
UBS |
|
Corporate |
|
Total |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income attributable to common stockholders |
|
$ |
178,735 |
|
|
$ |
103,687 |
|
|
$ |
129,981 |
|
|
$ |
(245,512 |
) |
|
$ |
166,891 |
|
Net income attributable to noncontrolling interests |
|
|
210 |
|
|
|
— |
|
|
|
— |
|
|
|
178 |
|
|
|
388 |
|
Preferred stock dividends |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
14,352 |
|
|
|
14,352 |
|
Provision for income taxes |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
37,654 |
|
|
|
37,654 |
|
Interest expense, net |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
63,620 |
|
|
|
63,620 |
|
Depreciation and amortization |
|
|
12,024 |
|
|
|
18,132 |
|
|
|
5,786 |
|
|
|
11,038 |
|
|
|
46,980 |
|
EBITDA |
|
$ |
190,969 |
|
|
$ |
121,819 |
|
|
$ |
135,767 |
|
|
$ |
(118,670 |
) |
|
$ |
329,885 |
|
Other (income) expense, net |
|
|
(174 |
) |
|
|
344 |
|
|
|
(33 |
) |
|
|
987 |
|
|
|
1,124 |
|
Stock-based compensation expense(1) |
|
|
1,622 |
|
|
|
877 |
|
|
|
626 |
|
|
|
4,425 |
|
|
|
7,550 |
|
Merger-related and integration costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
25,563 |
|
|
|
25,563 |
|
Adjusted EBITDA |
|
$ |
192,417 |
|
|
$ |
123,040 |
|
|
$ |
136,360 |
|
|
$ |
(87,695 |
) |
|
$ |
364,122 |
|
Adjusted EBITDA margin % |
|
|
9.2 |
% |
|
|
8.6 |
% |
|
|
9.7 |
% |
|
|
|
|
7.4 |
% |
||
(1) Stock-based compensation expense in the calculation of adjusted EBITDA for the three months ended March 31, 2022 excludes $1.4 million as such amount is included in merger-related and integration costs. |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Three Months Ended March 31, 2021 |
||||||||||||||||||
EBITDA and Adjusted EBITDA by Segment: |
|
EES |
|
CSS |
|
UBS |
|
Corporate |
|
Total |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income attributable to common stockholders |
|
$ |
100,629 |
|
|
$ |
73,594 |
|
|
$ |
87,013 |
|
|
$ |
(216,410 |
) |
|
$ |
44,826 |
|
Net loss attributable to noncontrolling interests |
|
|
(75 |
) |
|
|
— |
|
|
|
— |
|
|
|
51 |
|
|
|
(24 |
) |
Preferred stock dividends |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
14,352 |
|
|
|
14,352 |
|
Provision for income taxes |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
6,531 |
|
|
|
6,531 |
|
Interest expense, net |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
70,373 |
|
|
|
70,373 |
|
Depreciation and amortization |
|
|
10,563 |
|
|
|
16,293 |
|
|
|
5,210 |
|
|
|
9,143 |
|
|
|
41,209 |
|
EBITDA |
|
$ |
111,117 |
|
|
$ |
89,887 |
|
|
$ |
92,223 |
|
|
$ |
(115,960 |
) |
|
$ |
177,267 |
|
Other (income) expense, net |
|
|
(443 |
) |
|
|
370 |
|
|
|
17 |
|
|
|
(2,751 |
) |
|
|
(2,807 |
) |
Stock-based compensation expense(2) |
|
|
1,351 |
|
|
|
425 |
|
|
|
340 |
|
|
|
2,577 |
|
|
|
4,693 |
|
Merger-related and integration costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
46,322 |
|
|
|
46,322 |
|
Net gain on divestitures |
|
|
— |
|
|
|
— |
|
|
|
(8,927 |
) |
|
|
— |
|
|
|
(8,927 |
) |
Adjusted EBITDA |
|
$ |
112,025 |
|
|
$ |
90,682 |
|
|
$ |
83,653 |
|
|
$ |
(69,812 |
) |
|
$ |
216,548 |
|
Adjusted EBITDA margin % |
|
|
6.5 |
% |
|
|
7.3 |
% |
|
|
7.8 |
% |
|
|
|
|
5.4 |
% |
||
(2) Stock-based compensation expense in the calculation of adjusted EBITDA for the three months ended March 31, 2021 excludes $1.3 million as such amount is included in merger-related and integration costs. |
||||||||||||||||||||
Note: EBITDA, Adjusted EBITDA and Adjusted EBITDA margin % are non-GAAP financial measures that provide indicators of the Company's performance and its ability to meet debt service requirements. EBITDA is defined as earnings before interest, taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA before foreign exchange and other non-operating expenses (income), non-cash stock-based compensation expense, merger-related and integration costs, and net gain on the divestiture of Wesco's legacy utility and data communications businesses in Canada. Adjusted EBITDA margin % is calculated by dividing Adjusted EBITDA by net sales. |
WESCO International, INC. |
|||||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES |
|||||||
(dollar amounts in thousands, except per share data) |
|||||||
(Unaudited) |
|||||||
|
Twelve Months Ended |
||||||
Financial Leverage: |
March 31,
|
|
December 31,
|
||||
|
|
|
|
||||
Net income attributable to common stockholders |
$ |
530,039 |
|
|
$ |
407,974 |
|
Net income attributable to noncontrolling interests |
|
1,431 |
|
|
|
1,020 |
|
Preferred stock dividends |
|
57,408 |
|
|
|
57,408 |
|
Provision for income taxes |
|
146,633 |
|
|
|
115,510 |
|
Interest expense, net |
|
261,321 |
|
|
|
268,073 |
|
Depreciation and amortization |
|
204,325 |
|
|
|
198,554 |
|
EBITDA |
|
1,201,157 |
|
|
|
1,048,539 |
|
Other income, net(1) |
|
(44,181 |
) |
|
|
(48,112 |
) |
Stock-based compensation expense |
|
28,556 |
|
|
|
25,699 |
|
Merger-related and integration costs |
|
137,725 |
|
|
|
158,484 |
|
Net gain on divestitures |
|
— |
|
|
|
(8,927 |
) |
Adjusted EBITDA |
$ |
1,323,257 |
|
|
$ |
1,175,683 |
|
|
|
|
|
||||
|
As of |
||||||
|
March 31,
|
|
December 31,
|
||||
Short-term debt and current portion of long-term debt, net |
$ |
70,263 |
|
|
$ |
9,528 |
|
Long-term debt, net |
|
4,836,658 |
|
|
|
4,701,542 |
|
Debt discount and debt issuance costs(2) |
|
67,715 |
|
|
|
70,572 |
|
Fair value adjustments to Anixter Senior Notes due 2023 and 2025(2) |
|
(786 |
) |
|
|
(957 |
) |
Total debt |
|
4,973,850 |
|
|
|
4,780,685 |
|
Less: cash and cash equivalents |
|
201,474 |
|
|
|
212,583 |
|
Total debt, net of cash |
$ |
4,772,376 |
|
|
$ |
4,568,102 |
|
|
|
|
|
||||
Financial leverage ratio |
|
3.6 |
|
|
|
3.9 |
|
(1) |
Other non-operating income for the twelve months ended March 31, 2022 and December 31, 2021 includes a $36.6 million curtailment gain resulting from the remeasurement of the Company's pension obligations in the U.S. and Canada due to amending certain terms of such defined benefit plans. |
(2) |
Debt is presented in the condensed consolidated balance sheets net of debt discount and debt issuance costs, and includes adjustments to record the long-term debt assumed in the merger with Anixter at its acquisition date fair value. |
Note: Financial leverage is a non-GAAP measure of the use of debt. Financial leverage ratio is calculated by dividing total debt, excluding debt discount, debt issuance costs and fair value adjustments, net of cash, by adjusted EBITDA. EBITDA is defined as the trailing twelve months earnings before interest, taxes, depreciation and amortization. Adjusted EBITDA is defined as the trailing twelve months EBITDA before foreign exchange and other non-operating expenses (income), non-cash stock-based compensation expense, merger-related and integration costs, and net gain on the divestiture of Wesco's legacy utility and data communications businesses in Canada. |
WESCO International, INC. |
|||||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES |
|||||||
(dollar amounts in thousands, except per share data) |
|||||||
(Unaudited) |
|||||||
|
Three Months Ended |
||||||
Free Cash Flow: |
March 31, 2022 |
|
March 31, 2021 |
||||
|
|
|
|
||||
Cash flow (used in) provided by operations |
$ |
(171,911 |
) |
|
$ |
120,490 |
|
Less: Capital expenditures |
|
(15,247 |
) |
|
|
(10,211 |
) |
Add: Merger-related and integration cash costs |
|
22,798 |
|
|
|
14,472 |
|
Free cash flow |
$ |
(164,360 |
) |
|
$ |
124,751 |
|
Percentage of adjusted net income |
|
(80 |
)% |
|
|
141 |
% |
|
Note: Free cash flow is a non-GAAP financial measure of liquidity. Capital expenditures are deducted from operating cash flow to determine free cash flow. Free cash flow is available to fund investing and financing activities. For the three months ended March 31, 2022 and 2021, the Company paid for certain costs to integrate the acquired Anixter business. Such expenditures have been added back to operating cash flow to determine free cash flow for such periods. |